Home Values

home valuesIt is widely accepted that rent amounts are a fundamental factor in determining the value of housing. A Redfin analysis found these buyers are leaving too-hot-to-touch markets like the Bay Area, Seattle, Boston and Southern California and buying in more reasonably priced neighborhoods near cities like Salt Lake City, Oklahoma City and Raleigh, N.C. That, in turn, is driving up home prices in those communities.

The best way to predict where a specific area’s real estate market and home value prices are going is to examine the past market (home value rates, number of sales per month, etc) as well as the specifics of the area: economy, employment opportunities, and attractions to outside visitors.

Instead, it focuses on sales and concludes that the tax law’s $10,000 cap on deductions of state and local taxes (SALT), its increase in the standard deduction and the $750,000 limit on the amount of mortgage debt that qualifies for interest write-offs have negatively impacted the housing market” by lowering sales volume.

By examining past home value and sales trends in a specific area, as well as that area’s economy, unemployments rates, job opportunities and tourist attractions, you can get a idea of whether home value prices are likely to rise or fall in that area.home values

In Boston, one working paper from the University of Massachusetts Boston Department of Economics found a causal relationship between Airbnb proliferation and housing prices: with every 12 Airbnb listings per census tract, asking rents increased by 0.4 percent.